Glasseco INT Ltd (07343142): administration
- Status
- Administration ended
- Administration began
- 2017-02-17
- Administrators
- John Anthony Dickinson, Carl James Bowles
- Administrators' firm
- Alvarez & Marsal
- Incorporated
- 2010-08-11
- Location
- London
- Industry
- 32990 Other manufacturing n.e.c.
Why it went into administration
- Cash flow / liquidity pressure
- Loss of a key customer, supplier or contract
From the administrators' statement
As per the CVA proposats drafted by David Ruben & Partners, the Company was approached in 2013 by one of the largest surface providers in the world to supply product to them for onward supply by them to Retatl/Trade Sheds (B&Q, Wicks, Magnet, Homebase etc) and to larger commercial customers (The Post Office, M&S etc) After initial discussions, the Company was asked to produce a new version of tts product in 6mm format, rather than its normal 20mm
To produce product in such a thin format was a technical challenge but, because of the commercial potential, the Directors believed it was a challenge worth addressing Over the last two years of trading, the Company developed and refined the 6mm product and honed tts manufacturing techniques to endeavour to make a sensible margin on the 6mm product Over £1 million was invested whilst refining the product to fund the losses and fund the research and development, which was taken straight to the profit and loss account The Company managed to increase the margin on this product to between 15% to 20%, but it dtd not achieve the 40% to 50% gross margin made on the traditional lines
The Company's major customer for the 6mm product, which made up approximately 50% of its turnover, announced on 18 January 2016 that they were dramatically reducing their order levels with immediate effect The Company accordingly restructured the business, reduced the workforce by 40% and diverted production to its other product ranges This restructuring was anticipated to take three to six months to achteve, but, tn any event, the Company was expected to be tn profit by April 2016 With the increasing volumes of product, it was forecast that seven additional employees would be necessary by August 2017
Administrators' statement of proposals (2017-03-03) · Companies House register